One of the significant changes in the contract design is a move in the pricing point to a Par region within the central portion of Saskatchewan, from the current contract, which is based on a Thunder Bay pricing point. This shift in the pricing point, coupled with other modifications to the contract terms, is expected to encourage better convergence between cash and futures prices. Also, it is anticipated the revised contract design will improve the applicability of the contract, and in particular to participants in the western Canadian feed wheat market.
The introduction of a redefined deliverable grade specification which more closely reflects the quality parameters that dominate trade in the underlying cash market, is expected to enhance the relevance of the WCE feed wheat contract. Other features of the new contract design include; the expiration of trade on the business day preceding the fifteenth calendar day of the delivery month, with the last delivery day being the second business day after the last day of trade.
WCE is a not-for-profit organization and Canada's only agricultural futures and options exchange. WCE offers futures contracts on canola, flaxseed, domestic feed wheat, western barley, oats, and field peas. Options contracts are available on canola, flaxseed, feed wheat, and western barley.
